Which of the following is required by the Sarbanes-Oxley Act?
A) a price-earnings ratio
B) a report on internal control
C) a vertical analysis
D) a common-sized statement

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act requires a report on internal control. This report must include a statement of management’s responsibility for establishing and maintaining adequate internal control over financial reporting, an assessment of the effectiveness of the company’s internal control over financial reporting, and a description of any material weaknesses in the internal control over financial reporting identified by management or the company’s auditors. A price-earnings ratio, vertical analysis, and common-sized statement are not required by the Sarbanes-Oxley Act.

Which of the Following Is Required by the Sarbanes-Oxley Act